Chinese conglomerate Shanghai Pengxin Group Co Ltd is set to become the largest farmland owner in Australia if it is successful in the acquisitions of two cattle farms for A$1 billion ($720 million). The Shanghai-based company has placed separate offers for Consolidated Pastoral Co and S Kidman & Co Ltd, two of the country’s largest beef producers, according to the Australian Financial Review newspaper. If the acquisitions are successful, Pengxin will create a cattle powerhouse that would own more than 1 percent of the Australian continent, according to the report…Full Article: China Daily Aug 2015

Key Points

  • According to a representative of S Kidman & Co Ltd, final bids to purchase the company will occur in late October 2015 at the earliest.
  • Consolidated Pastoral Company’s operations total ~375,000 heads of cattle. CPC owns approximately 0.75% of Australia’s landmass (primarily in northern and western Australia). S Kidman & Co Ltd’s operations total ~185,000 heads of cattle.
  • According to a commodity analyst, from 2014 to 2019, China’s beef production deficit is expected to increase from 380,000 MTs to 590,000 MTs.

ChinaAg Comments

  • In late 2012, Shanghai Pengxin won a legal battle to purchase 16 North Island dairy (CraFarms) farms. The farms (8,000 ha and 16,000 cows) were purchased by Shanghai Pengxin’s subsidiary Pengxin New Zealand Farm Group.
  • Founded in 1997 and headquartered in Shanghai, Shanghai Pengxin owns more than 40 subsidiary companies as of 2015.  The conglomerate has businesses in real estate, mining, agriculture, and private equity.

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